tion to sales history, current customer orders, and forecasted demand, which of
ID: 326789 • Letter: T
Question
tion to sales history, current customer orders, and forecasted demand, which of the following data sources should be used as part of a demand management process A. Inventory levels C. Contractual obligations D. Scheduled marketing activities B. Customer profitability manufacturer can simplify the forecasting process by pooling demand forecasts for product group and then it evenly across all items. B. Disaggregating demand to the item level based on marketing input C. Disaggregating demand to the item level based on historical proportions D. Allocating demand to each production site.Explanation / Answer
2): A: For demand management process the data source which could be used is ‘Inventory Levels' (Option A). Besides the other data sources of sales history, current customer orders and forecasted demand. The assessment of the inventory is very significant and pivotal as it enables streamlining of the entire process / mechanism. With a broader and holistic overview of the various aspects related to the demand process it leads to integration of the supply chain procedures. The detailed analysis of the inventory provides the relevant insight into the way the end to end demand management process needs to be conducted / executed. This keeps the organisation on a strong footing as everything related to sales, marketing, demand and supply are synchronised well and in rhythm with each other. This leads to a happy customer and entity as goals and objectives are accomplished at both sides and works in favour of mutual interests.
3): A: In the mentioned context, the option (A) would be viable as the entire forecasting process could be streamlined with a better accuracy. By pooling in demand forecasting across for a product group it would simultaneously facilitate the aggregate demand averaging and equitable distribution across all items of the respective group of products. This is in tandem with the concept of risk pooling which highlights that aggregating demand related to products / locations helps in lessening variation in demand. As a result, it enhances the efficiency of supply chain procedures in a comprehensive manner.
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